Correlation Between Cullman Bancorp and Franklin Financial
Can any of the company-specific risk be diversified away by investing in both Cullman Bancorp and Franklin Financial at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Cullman Bancorp and Franklin Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cullman Bancorp and Franklin Financial Services, you can compare the effects of market volatilities on Cullman Bancorp and Franklin Financial and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Cullman Bancorp with a short position of Franklin Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cullman Bancorp and Franklin Financial.
Diversification Opportunities for Cullman Bancorp and Franklin Financial
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cullman and Franklin is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Cullman Bancorp and Franklin Financial Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Financial and Cullman Bancorp is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Cullman Bancorp are associated (or correlated) with Franklin Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Financial has no effect on the direction of Cullman Bancorp i.e., Cullman Bancorp and Franklin Financial go up and down completely randomly.
Pair Corralation between Cullman Bancorp and Franklin Financial
If you would invest 3,008 in Franklin Financial Services on August 28, 2024 and sell it today you would earn a total of 339.00 from holding Franklin Financial Services or generate 11.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Cullman Bancorp vs. Franklin Financial Services
Performance |
| Timeline |
| Cullman Bancorp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Franklin Financial |
Cullman Bancorp and Franklin Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cullman Bancorp and Franklin Financial
The main advantage of trading using opposite Cullman Bancorp and Franklin Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cullman Bancorp position performs unexpectedly, Franklin Financial can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Franklin Financial will offset losses from the drop in Franklin Financial's long position.| Cullman Bancorp vs. Home Federal Bancorp | Cullman Bancorp vs. Lake Shore Bancorp | Cullman Bancorp vs. Community West Bancshares | Cullman Bancorp vs. Magyar Bancorp |
| Franklin Financial vs. Magyar Bancorp | Franklin Financial vs. Affinity Bancshares | Franklin Financial vs. Home Federal Bancorp | Franklin Financial vs. Sound Financial Bancorp |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing |